Modern Mining January 2023

ODERN M INING January 2023 | Vol 19 No 1 For people who are serious about mining

 GoldOre eyes global growth with the MACH Reactor  Commodities Outlook: forecasting fundamentals for 2023  Top projects advancing to production  Mining Indaba to offer thrilling line-up of new topics

Special Mining Indaba issue

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CONTENTS

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ARTICLES COVER 10 GoldOre eyes global growth with the MACH Reactor COMMODITIES OUTLOOK

14 PGM Outlook: Platinum to surge ahead in 2023 16 Zinc Ore Outlook: Price performance review 18 Diamond Outlook: State Diamond Trader perspective 20 Coal Outlook: Why reality matters in 2023 TOP PROJECTS 24 VUP on-track for production in 2023 30 Ivanplats advances underground development at Platreef 34 Renergen’s Virginia Gas Project – SA’s pre-eminent clean energy project 38 PAR to commission its newest gold tailings project in mid-2024 42 Orion Minerals prepares for a busy 2023 at its Prieska project MINING INDABA PREVIEW 46 Investing in African Mining Indaba 2023 preview COMPANY PROFILES 50 Bosch Rexroth 52 Geobrugg

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REGULARS MINING NEWS 4 EAIF commits €25-million to 44 MW hydropower plant in Côte d’Ivoire Caledonia completes acquisition of Bilboes gold project in Zimbabwe AfriTin Mining rebrands to Andrada Mining 5 Akobo Minerals continues rapid development of Segele Mine Orezone enhances management team 6 Kamoa Copper’s growth profile aligns with sustainability and social initiatives Walkabout Resources appoints GM for Lindi Jumbo project 7 ERG and Gécamines restart operations at Boss Mining in the DRC Anglo American invests $200 m to accelerate Zero Emissions Haulage Solution 8 Ironveld achieves first production at refurbished smelter Tembo Capital provides convertible loan facility to Orion Minerals 9 Appointment of consultants for Kinusi Copper project Asante reports 20,7% increase in average monthly gold production New MD for SRK Consulting (SA) COLUMN : ROSS HARVEY 58 Is ESG the latest acronym or could it change mining substantively? SUPPLY CHAIN NEWS 61 Doosan to introduce new global brand at CONEXPO-CON/AGG 2023 New yard crane for Mpumalanga refinery 62 Komatsu to acquire German-based manufacturer GHH Group GmbH 63 New technology enables real-time carbon monitoring 64 TOMRA Mining to present diamond recovery solution at Mining Indaba 2023

ON THE COVER Despite current market challenges, GoldOre has landed new business in new international territories in line with its strategy of global business expansion. See story on page 10.

January 2023  MODERN MINING  1

A happy New Year? I f the horoscope predictions for 2023 are to be believed, then I guess it’s a happy New Year, on most fronts, which is a relief given the trials of the past few years. But, as South Africans we come into the New Year with legacy challenges, particularly those related to Eskom, which is likely to dim that upbeat forecast. Obviously, the thought of the Department of Mineral Resources and Energy taking over Eskom has irked many people, with a number questioning the department’s ability to effectively handle such a massive undertaking. That the National Energy Regulator of South Africa recently agreed to an 18.65% increase in electricity tariffs, effective from 1 April this year, further burdening cash-strapped South Africans, is the straw that is breaking South African’s back. Citizens have long watched politicians and senior government employees serving them selves instead of the nation with the result that there continues to be gross mismanagement and poor maintenance of equipment and plants, and lack of investment in key infrastructure which now sees us facing stage six loadshedding. Ministers though are exempt from both loadshedding and water shedding – what a pity. It might have made a massive difference if they were forced to endure the same severe levels of shedding that the rest of us face. The saying: You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time , is most apt. If this is the case, are we lining up for an Arab spring? Violent protest action is already erupting amid growing frustration at the electricity crisis, which is having a knock-on effect on water avail ability in some areas. But South African’s are not alone in being pow erless; numerous countries across the globe face power issues, even if not of their own making. The 53 rd annual meeting of world leaders at the World Economic Forum in Davos, has seen some energy experts declare a global energy crisis amid

the Russian invasion of Ukraine, with the war plac ing pressure on oil and natural gas supplies to many European nations. From a power point of view, 2023 is certainly going to be a horrendous year for South Africans – with some experts predicting stage 8 and stage 10 loadshedding. Stage 10 loadshedding, what does that even mean? I shudder to think! But on a more positive note, the issue of power will be unpacked in greater detail at the Investing in Africa Mining Indaba 2023 and attendees will certainly get a chance to hear what the Minister of Mineral Resources and Energy has to say on the subject. How the DMRE, which has failed for years to implement what some in industry regard as a “simple solution” for a cadastral system, is to succeed in turning around the failed power utility remains a mystery. As the mining industry and related businesses gear up for the Investing in Africa Mining Indaba, the organisers report a thrilling line-up of new top ics and a greater focus on emerging and junior miners, and ESG. To give readers a view of how key commodi ties are set to perform in 2023, industry specialists have provided us with a Commodities Outlook, including the WPIC, which offers a PGM outlook, the State Diamond Trader provides an outlook for the diamond industry, coal miner, Menar, shares insight into the coal sector and our regular econo mist, Alana van Wouw, imparts her outlook on the zinc market. This edition also features our top projects and gives an update on their latest developments, including production timelines. The top proj ects are: De Beers Venetia Underground mine, Renergen’s Virginia gas project, Ivanhoe’s Platreef project, Pan African Resources the Mogale Gold project and Orion Minerals Prieska project. Meanwhile, our cover story, GoldOre, which is garnering much attention with its innovative MACH Reactor, has its eye firmly set on capturing world attention, says MD Adrian Singh. 

COMMENT

Nellie Moodley

Editor: Nellie Moodley e-mail: mining@crown.co.za Advertising Manager: Rynette Joubert e-mail: rynettej@crown.co.za Design & Layout: Darryl James Publisher: Karen Grant Deputy Publisher: Wilhelm du Plessis

Circulation: Brenda Grossmann and Shaun Smith Published monthly by: Crown Publications (Pty) Ltd P O Box 140, Bedfordview, 2008

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The views expressed in this publication are not necessarily those of the editor or the publisher.

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Average circulation July-September 2022: 13 141

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MINING News

EAIF commits €25-million to 44 MW hydropower plant in Côte d’Ivoire

Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), has announced a €25 million finance facility to Ivoire Hydro Energy (IHE), which will build a 44 MW hydro electricity generation plant on the Bandama River near the village of Singrobo in Côte d’Ivoire. EAIF’s long-term financing package enables IHE to achieve financial close for the project, catalysing the design, construc tion and operation of the power plant and associated infrastructure, and boosting rural access to clean energy. The new plant will be an essential stra tegic economic asset for Côte d’Ivoire, where electrification rates range from 88% in urban areas to as low as 31% in rural parts of the country. By displacing expensive peak-time diesel production and reducing CO₂ emissions by 124 000 tons per annum, the plant is also integral to the government’s efforts to achieve the UN’s Sustainable Development Goals on Climate Action (SDG 13) and on Affordable and Clean Energy (SDG 7). Construction of the plant – as well as 3 km of access roads and a 4 km 90 kV transmission line and substation to connect

the hydropower plant to the existing Taabo Agboville transmission line – will generate over 500 jobs. Paromita Chatterjee, investment director at Ninety One, the fund manager for EAIF, noted: “The new faci l i ty at Singrobo will be Cote d’ Ivoire’s f irst hydro electric development by an independent power producer. We are excited that it delivers on three of PIDG’s strategic objec tives: mobilising private

EAIF invests €25 million to build a 44 MW hydro electricity generation plant.

capital, enabling economic development and contributing to increasing Africa’s stock of renewable energy infrastructure.” The Singrobo plant catalyses the Ivorian government’s strategic plan for the devel opment of the electricity sector, which aims to increase the total installed capacity to 4.2 GW (from around 2.2 GW currently) by 2030 mainly through Public-Private Partnerships, reaffirming EAIF’s role as a pathfinder supporting the development of nascent renewable energy markets. A long term power purchase agreement will see all the energy produced by the Singrobo plant sold to Compagnie Ivoirienne d’Electricité , the operator of Côte d’Ivoire’s national grid. In addition to closing the rural energy access gap and strengthening economic productivity, the plant’s flexible operating model enhances grid resilience, meaning it may be called in to meet baseload and peak demand.  Caledonia completes acquisition of Bilboes gold project in Zimbabwe

AIM-listed Caledonia Mining Corporation has completed the acquisition of Bilboes Gold, the parent company that owns, through its Zimbabwe subsidiary, Bilboes Holdings, the Bilboes gold project in

Zimbabwe. The project is a large, high grade gold deposit located about 75 km north of Bulawayo, Zimbabwe. Bilboes gold has NI43-101 compliant proven and probable mineral reserves of 1.96 million

ounces of gold in 26.64 million tonnes at a grade of 2.29 g/t, measured and indicated mineral resources of 2.56 million ounces of gold in 35.18 million tonnes at a grade of 2.26 g/t, and inferred mineral resources of 577 000 ounces of gold in 9.48 million tonnes at a grade of 1.89 g/t. A feasibility study prepared by the vendors (the DRA Feasibility Study) indicates the potential for an open-pit gold mine producing an aver age of 168 000 ounces per year over a 10-year life of mine. 

AfriTin Mining rebrands to Andrada Mining AIM-listed AfriTin Mining, an African technology metals mining com pany with a portfolio of mining and exploration assets in Namibia, has confirmed its name change from AfriTin Mining to Andrada Mining. The change of name took effect on 11 January 2023. The name Andrada reflects the company’s expanding lithium and tantalum resources alongside its existing tin production. It originates from José Bonifácio de Andrada e Silva , the Brazilian mineralogist and professor who first discovered petalite and spodumene, which are major lithium bearing minerals and a pre cursor to the identification of lithium. The company believes the Uis

Andrada Mining CEO, Anthony Viljoen.

licence could host a globally significant lithium resource. Anthony Viljoen, CEO, commented: “I’m delighted to confirm the company’s change of name and we look forward to rebranding as Andrada Mining. The company’s potential lithium resource size in Namibia is extremely exciting, and the change of name reflects the importance of it within our growing produc tion profile, beyond our existing tin operation. We look to the future with huge excitement as Andrada Mining plays its part in the energy transition.” 

Caledonia finalises acquisition of Bilboes gold.

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Akobo Minerals continues rapid development of Segele Mine

TSX-listed Canadian mining company, Orezone Gold, which is operating the open pit Bomboré Gold Mine in Burkina Faso, has announced the appointments of Rob Henderson as vice president, techni cal services, and Kevin MacKenzie as vice president, corporate development & inves tor relations. CEO Patr ick Downey, said, “I am extremely pleased that Henderson and MacKenzie have joined our team. Both are well-regarded industry profession als with significant worldwide experience in management, operations, exploration, capital markets and M&A. Henderson is a proven mining executive with exten sive global operations and development experience including West Africa as VP technical services for Kinross Gold. He will lead Orezone’s technical teams, ensur ing ongoing operational excellence, and Ethiopian gold exploration and boutique mining company, Akobo Minerals, says the company is ramping up its activities to develop the Segele Gold Mine. The surface mining operations are underway, the process plant parts have started arriving and many designs are near ing completion, the company said. The mining contractor IW Mining has made significant progress and reached a depth of 9 m in the incline shaft entrance, with only five additional metres depth needed to reach the depth where under ground mining will begin. The first blast is expected to be completed within days and the development of safety procedures is nearing completion. As the intensity of mining activities increases, IWMining has begun recruitment of local staff, and additional earthmoving equipment is being sourced. The gold processing plant design and fabrication process is close to completion with only a few minor parts remaining. Plant contractor Solo Resources has successfully navigated the challenging processes of timely ship ping from South Africa, Canada, Australia and China. A total of 19 shipments are on their way to site, the company stated. An Ethiopian civil engineering firm is in the process of completing geotechnical investigations and foundation designs for

Above: The incline shaft entrance excavation has reached a depth of 9 m. Right: The ball mill and other major equipment for the crushing circuit have arrived on-site. the processing plant. Once the foun dations are in place, construction and commissioning will be supervised by Solo Resources and Akobo Minerals. The company has also recruited experienced processing plant spe cialist, Manie Nienaber from South Africa, to lead the construction, commissioning and operation of the processing plant. 

Orezone enhances management team

provide technical and management leadership as we advance Bomboré through the p l anned major sulphide expansion. MacKenzie has a strong technical and capital mar kets background, most recently as a leading pre cious metals analyst for Canaccord Genuity, with

Orezone enhances management team.

global experience in asset evaluation. His skillsets and experience will be invaluable as we expand our growth strategy in the region and look to grow our business into a multi-asset, multi-jurisdictional, high qual ity mid-tier gold producer.” Henderson is a global mining indus try leader with international experience in operating, building and acquiring mineral properties. He has worked in the indus

try for 35 years for Great Panther Mining, Amerigo Resources, Kinross Gold, DeBeers and Rand Mines and provided engineer ing services to international mining clients while with SNC Lavalin and Hatch. MacKenzie has over 15 years of capital markets and industry experience. Prior to joining Orezone, MacKenzie held the posi tion of MD: metals & mining equity analyst at Canaccord Genuity. 

January 2023  MODERN MINING  5

MINING News

Canadian miner, Ivanhoe Mines’ Kamoa-Kakula Mining Complex, in the Democratic Republic of Congo (DRC) produced 333 497 tonnes of copper in concentrate in 2022, achieving the upper-end of the original 2022 production guidance range of 290 000 to 340 000 tonnes. Kamoa-Kakula’s 2022 production achievement represents a year-over-year increase of 215%, the company said. The 2023 Kamoa Copper’s growth profile aligns with sustainability and social initiatives annual production guidance for Kamoa-Kakula is estimated at between 390 000 to 430 000 tonnes of copper in concentrate, following the anticipated completion of the debottlenecking pro gramme early in the second quarter of 2023.

Executive co-chair Robert Friedland commented: “Kamoa Kakula has firmly established a track record of excellence during the development of Phase 1 and Phase 2 operations, which has led to an industry-leading growth profile in terms of copper produc tion that will continue as we bring Phase 3 online. Kamoa-Kakula also stands out among its peers as one of the few mining opera tions worldwide to deliver strongly on its original 2022 production guidance, which is further testament to the team of engineers and contractors who commissioned the Phase 2 concentrator several months ahead of schedule. With the Phase 3 expansion well on track, including the integration of Africa’s largest single-line blister copper flash smelter, Kamoa-Kakula is poised to become one of the world’s leading producers of vital copper metal for global markets, a producer that will have one of the lowest, if not the lowest, carbon footprints in the industry.” 

Kamoa-Kakula’s 2022 production achievement represents a year-over-year increase of 215%.

Walkabout Resources appoints GM for Lindi Jumbo project

ASX-listed Walkabout Resources has appointed mining execu tive Charl van der Merwe as general manager of the Lindi Jumbo Graphite Mine in Tanzania. Van der Merwe joins the Lindi Jumbo team at a crucial time, as preparations for mine commissioning and operations gather pace while construction continues. The Lindi Jumbo Graphite Mine is currently under construction and an estimated six months from the start of commissioning after further funding is finalised and remaining shipments commence. CEO of Walkabout Resources, Andrew Cunningham com mented: “This appointment significantly bolsters the company as it prepares for an exciting growth phase, with its high quality high-margin flake graphite mine earmarked to come on-line during a forecast period of severe global graphite supply shortfall”. 

Lindi Jumbo prepares for mine commissioning.

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ERG and Gécamines restart operations at Boss Mining in the DRC

Benedikt Sobotka, CEO at ERG, said: “We are not only celebrating the return to produc tion at this time, but also our long-standing partnership with Gécamines and its profes sional team, without whom this restart would not have been possible.” The phased restart will concentrate on pro cessing historically mined fines over the next 16 months to produce copper cathodes and cobalt hydroxide. The operation will ramp up over the coming months to its full capacity producing, on average, 1 800 t of copper cath ode and 300 t of cobalt hydroxide a month, by March 2023. 

Eurasian Resources Group (ERG) and its joint venture partner, La Générale des Carrières et des Mines (Gécamines), celebrated the restart of operations at Boss Mining with a ceremony held at its concession in November 2022. Boss Mining, located in the Lualaba and Haut Katanga provinces of the Democratic Republic of the Congo (DRC), has a long history of copper and cobalt production from significant open-pit resources. Boss Mining was placed into care and maintenance early in 2019 to allow ERG and Gécamines to assess different investments paths and conduct further studies to improve operations’ economics and sustainability.

ERG and Gécamines celebrate the restart of operations at Boss Mining.

Anglo American invests $200 m to accelerate Zero Emissions Haulage Solution

Diversified miner, Anglo American, has signed an agreement with First Mode Holding (First Mode) to combine Anglo American’s nuGen™ Zero Emissions Haulage Solution (ZEHS) with First Mode, the specialist engineering tech nology company that partnered with Anglo American to develop the nuGen™ ZEHS. The transaction is intended to accelerate the development and commercialisation of Anglo American’s nuGen™ ZEHS. Anglo American acquired a 10% strategic equity interest in First Mode in 2021. The transaction includes Anglo American making an additional capital invest ment of $200-million in the combined business to help fund the ongoing development of ZEHS which, upon completion of the transaction, val ues the business in the order of $1.5 billion and results in Anglo American owning a majority shareholding in First Mode. The balance of the equity interest at that time will be held by sev eral of First Mode’s founders and employees.

Anglo American accelerates Zero Emissions Haulage Solution. In addition to accelerating the development and commercialisation of the ZEHS technology, the new combined business will allow strate gic third parties to co-invest alongside Anglo American and First Mode, offering the oppor tunity to accelerate their own decarbonisation and participate in the potential offered by the clean ZEHS technology. 

January 2023  MODERN MINING  7

MINING News

Ironveld achieves first production at refurbished smelter

AIM-listed Ironveld reports that its sub sidiary, Ironveld Smelting, has completed refurbishment of the first of the three fur naces at the Rustenburg smelter complex and has successfully produced metal from the furnace, marking a transformational step in the company’s development. The refurbishment work at the Rusten burg smelter complex is proceeding well against the planned six-to-nine-month schedule envisaged at the commencement

of works, the company said. During December 2022 ‘cold commis sioning’ of mechanical equipment at the smelter was successfully completed and has been followed over the holiday period by ‘hot commissioning’ of the first of three planned operating furnaces. The furnace has successfully smelted test quantities of magnetite ore to produce HPI and tita nium slag of marketable standard for the first time. Initial analysis of the HPI confirms

that it meets planned quality and content specifications. In the coming weeks, operations from the first furnace will be tested and opti mised and extended to include production of vanadium slag, which requires a further processing step. First production sales are still on line to be achieved by Q2 2023 as planned. The second and third furnaces at the smelter continue to be refurbished and are both expected to be in production by April 2023. Once the three furnaces are fully operational, the complex will be capable of processing around 40 000 tonnes of Ironveld’s magnetite ore per annum which, in turn, will provide the following approxi mate quantities of finished products per annum: 20 000 tonnes of high purity iron; 190 tonnes of vanadium in slag; and 3 800 tonnes of titanium in slag. Martin Eales, CEO of Ironveld, com mented: “Our aim is to create a sustainable, socially and environmentally responsible operation that will prove to be rewarding for all stakeholders. The news that Ironveld Smelting has successfully smelted ore into marketable metal products in the first oper ating furnace is a fantastic achievement for the whole Ironveld team. We anticipate first revenues from initial production comfort ably in line with our original expectation of Q2 2023.” 

Ironveld Smelting completes refurbishment of first of three furnaces.

Tembo Capital provides convertible loan facility to Orion Minerals

JSE-listed Orion Minerals has announced that substantial holder, Tembo Capital Mining Fund II LP (Tembo) continues its strong sup port of Orion, through providing a new unsecured Convertible Loan Facility of US$0.50 M. Orion’s CEO, Errol Smart, commented: “This funding provides valuable bridging finance to maintain momentum for commence ment of the trial mining and dewatering operations at the Prieska Copper Zinc Mine in January 2023, while the IDC and Triple Flag funding facilities are finalised and draw down on that funding is achieved. It has been exactly six years since Orion exercised its option to acquire the Prieska Copper Zinc Project, and Tembo pro vided its first funding to Orion in the form of a convertible note to fund the acquisition of the project and undertake the first drilling in 2017. The project has since lived up to our technical expectations and, with Tembo’s support, Orion has taken the project from a pros pecting right application to a fully permitted mining right, supported by a bankable feasibility study (BFS), demonstrating potential for attractive financial returns. Our revised strategy announced in 2022, to accelerate start-up of production with mining from near surface ore sources, while dewatering the mine to access the

Orion’s CEO, Errol Smart.

Prieska Deeps Ore and ramp up to the BFS design of 2.4 mtpa run of-mine operation, is fully supported by Tembo, who continues to provide financial support to unlock the investment.” 

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Appointment of consultants for Kinusi Copper project

African focused mining and development company Marula Mining has appointed exploration and mining service company Geofields Tanzania to commence cop per exploration work at the Kinusi Copper Project, in Tanzania. The appointment of Geofields follows the commencement of exploration activities by them at the compa ny’s Bagamoyo Graphite Project, earlier this month. Work at the Kinusi Project, where the company has secured a 49% commer cial interest from local Tanzanian company Takela Mining Tanzania in 10 granted cop per mining licenses located in Mpwapwa District in the Dodoma Region of central Tanzania, is to commence in February 2023. Jason Brewer, Marula Mining PLC CEO said: “Copper prices have risen beyond $9,000/ tonne, and copper demand is expected to increase as the transi tion to renewables and electric vehicles accelerates. Copper is one of the major components in electric cars, used in the electric motor, batteries, and wiring, as well as charging stations, and its attrac

Geofields Tanzania to commence copper exploration at Kinusi Copper Project.

tion to investors as a key green metal will drive higher prices in the coming years. We believe that Kinusi has the potential to be the company’s second operating mine in 2023 and we look forward to working with the Takela team in making it a success.” 

New MD for SRK Consulting (SA) Andrew van Zyl has been appointed MD o f SRK Consu l t i ng (SA), the South African arm of the global SRK network of consulting engineering practices. He is also a member of the SRK Global Board

Asante reports 20,7% increase in average monthly gold production

Andrew van Zyl new MD for SRK Consulting (SA).

Gold miner, Asante Gold, has announced a 20.7% increase in average monthly gold production for November and December 2022, as compared with the prior two months, from its Bibiani Gold Mine and Chirano Gold Mine in Ghana. There are no comparable year-earlier results as Bibiani gold production com menced in July 2022 and Chirano was acquired on August 10, 2022. Asante’s fis

cal year ends on January 31, 2023. Dave Anthony CEO, said, “Over the past 12 months Asante has been trans formed from an early-stage exploration company to a mid-tier gold producer. The significant production gains in November and December bode well for the achieve ment of our 400 000 ounce target from Bibiani and Chirano for the fiscal year ending January 31, 2024.” 

and Exco. Van Zyl stepped into the role from January 2023, taking over from Vis Reddy who completed a term of almost eight years as MD at the end of 2022. Having joined SRK in 2011, Van Zyl became a partner in the firm in 2015 and was appointed as a director in 2020. “My new role is primarily focused on people, context and strategy, to give SRK’s partners and practices a sounding board and to help build the complementary strengths within the company,” he said. SRK Consulting (SA) com prises about 300 permanent staff and several associate consultants. An important secondary role is ensuring integration within the global group and increased collaboration with the balance of the 1700 staff across the globe – the company is increasingly benefiting from the establishment of niche, specialist technical centres of excellence around the world, the company said. Van Zyl has extensive experi ence in the mining sector, working initially in production and project roles and later shifting his focus into strategy, business development and valuation. 

Asante announces significant increase in production at Bibiani Gold Mine and Chirano Gold Mine.

January 2023  MODERN MINING  9

COVER STORY

GoldOre eyes global growth The Covid-19 pandemic continues to challenge mining business globally, with many projects being put on hold resulting in the closure of numerous smaller companies that lend support to larger mining houses. Fortunately, owing to GoldOre’s business model, the company has been able to weather the storm and take advantage of the quiet time to further research and build up a formi dable stock of MACH Reactors (ranging in size from 300 m 3 /h to 3 000 m 3 /h) and semi-pilot test-rigs in readiness for business opportunities and with stock available on hand to supply into projects, says GoldOre’s MD Adrian Singh.

G oldOre has a business model of outsourcing and leasing. The company has a small core team of employees to execute strategy and steer the business, with specific func tions of the company being outsourced to other companies. While there are few employees, there are many stake holders to support the business. Apart

curve for the company. The fact that GoldOre was able to secure the performance bond with the bank is testament to the credibility of the company.” The business landed in Mexico showcases the largest MACH Reactors installed to date, with capaci ties of up to 2 000 m 3 /h through a single reactor. “Not one of the products from competitors is able to match this extensive capacity as their largest units only reach a capacity of 600 m 3 /h,” says Singh.

from the obvious benefit of job creation, this model also allows GoldOre to ‘idle’, without hav ing to lay off employees, when times get tough. When there is little new business, the leasing model (although MACH Reactors can also be purchased) keeps the cashflow ticking over and allows a certain degree of ‘hibernation’ until business picks up. Given the diverse business operating models available, with each offering pros and cons, GoldOre offers potential clients who may be uncomfortable with the outsourcing business model the company adopts, the option of purchasing MACH Reac tor s ,

i n c l u d i n g t h e option of purchas ing spare reactors

GoldOre’s MD Adrian Singh.

to mitigate any perceived risk.

Despite current market challenges, GoldOre has landed new business in new international territories (Turkey and Mexico), which is in line with the company’s strategy of global business expansion. According to Singh, landing the business in Turkey was a great achieve ment given the stiff competition from numerous competitors and the need to meet with strict due diligence requirements, including visits by the client to GoldOre’s existing clientele to view the MACH Reactors in operation and obtain candid client reviews on the MACH technology. “For the first time, GoldOre had to provide performance guarantees along with bank performance bonds, which has been an interesting learning

GoldOre’s MACH Reactor in operation at a mine in Rustenburg.

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with the MACH Reactor A further advantage and world for this application in Mexico is the reduced power requirement, by as much as a 70% power reduction from the original design of the MACH. The number of venturis and venturi speeds of the MACH were optimised to allow the client to tap into the benefits of the MACH with out paying a penalty on carbon footprint.

“On the back of the numerous benefits afforded by the MACH, industry uptake for the product is look ing positive,” says Singh. MACH Reactor gains market traction “Until local mining and engineering houses have a change of mindset, embrace new technologies and move away from the age-old practices of nepotism, corruption and autocratic management styles that stifle free thinking by employees, we are bound to see South Africa falling short of international best practices in mining. GoldOre remains hopeful that, as a new consort of younger, free-thinking individu als move into positions of power, the South African mining culture may be refreshed,” Singh explains. In the meantime, the technology specialist’s drive for product enhancements has seen GoldOre’s col laborative partners in the potash industry conduct interesting research with the MACH Reactor and plan its inclusion in one of their new projects. “The news is highly encouraging for GoldOre,” says Singh, “and will be the MACH Reactor’s first breakthrough into the industrial minerals sector. We hope it will lead to further growth for GoldOre in this business segment.” In addition, exhaustive testwork conducted using a semi-pilot MACH testrig at a platinum concentra tor on the Great Dyke orebody yielded impressive improvements to recovery and grade. This translated into excellent project economics with the payback on investment being less than six months. Singh is cautiously confident this will be an incen tive to adopt a full-scale installation of the MACH Reactor and thus serve as a flagship example of what is possible with the MACH in the PGM sector. Strategy for 2023 The year ahead looks promising as the company plans to focus its research efforts on the copper sector, where GoldOre has identified an exciting application that ties in well with the finer grinding most copper operators are incorporating. “The benefits that the MACH technology brings with flotation preconditioning centres is around the selectively improved recovery of valuable fines that would otherwise be lost by conventional flotation technology. Grinding finer for liberation is great but flotation technology must also keep up to ensure

The MACH Reactor in operation at Mintek.

Industry uptake for the MACH is extremely positive for 2023.

January 2023  MODERN MINING  11

COVER STORY

of effluent from mines and a reduction in carbon emissions, there is a renewed focus on tech nologies that can cost-effectively and efficiently lower the impact on the environment. “GoldOre has conducted much research in this field and is ready to collaborate with min ing houses that wish to move their operations to compliance and beyond,” says Singh. A steep learning curve in designing and operating the world’s smallest hydrodynamic cavitation testrig at a local research institution, has, he says, informed design refinements for a new batch of test-rigs that are set for develop ment in the first quarter of 2023. The test rigs will be made available to commer cial laboratories and research institutions for product and project development, as well as to universities around the world for students undertaking post grad uate studies. According to Singh, GoldOre prides itself on col laborating with strategic partners and is always open to new opportunities for research and academic support. GoldOre at Investing in Africa Mining Indaba 2023 As the world emerges from the Covid-19 pandemic with face-to-face meetings and in-person confer ences once again becoming the norm, GoldOre will attend, participate in, and sponsor various confer ences throughout 2023. In fact, the company will be attending the Investing in Mining Indaba conference in Cape Town in February.

that fine liberated valuables are not lost to tailings. As the MACH is used to precondition ore ahead of flotation, the flotation technology that is employed in the circuit after the MACH does not have to be changed. This works to de-risk the application to a large extent – the flotation backbone of the plant stays the same and is always the fallback position. Copper circuits typically have high flowrates which the MACH caters for – the largest MACH Reactor has a design flowrate of 3 000 m 3 /h through a single unit,” explains Singh. With the race to net carbon zero emissions and the focus on ESG being paramount, GoldOre is eye ing business growth through promoting cyanide destruction and arsenic remediation applications. Mining houses have traditionally been reluctant to invest in environmental remediation; however, on the back of government regulators and lending institu tions becoming more stringent about the discharge

GoldOre looks to unlock further opportunities in new geographies in 2023.

Right: Laboratory and semi pilot MACH Reactors ready for installation.

“The Mining Indaba conference offers a great opportunity to network and showcase how GoldOre can assist busi nesses to improve project economics, while reducing the carbon footprints, of projects that are close to execution and looking to attract the right investment.” GoldOre is also sponsor ing the Flotation ’23 conference, which will be held in Cape Town in November 2023, and where the company will have an exhibition stand. “We look forward to presenting our latest research and interacting with, and gaining new insights and ideas, from other delegates.” The equipment specialist is upbeat about 2023 as it looks to unlock further opportunities for its existing client base and potential new clients. “On the back of a myriad of benefits of adopting the MACH Reactor, we look for ward to growing our business and global footprint exponentially and taking a South African technology to all reaches of the globe,” concludes Singh. 

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12  MODERN MINING  January 2023

PLATINUM OUTLOOK

Platinum to surge ahead this year By Edward Sterck, Director of Research, World Platinum Investment Council The platinum market is forecast to swing into deficit in 2023 and is well-insulated from economic headwinds. The platinum supply/demand balance is expected to be in deficit in 2023, a swing of over 1.1 moz following – on the face of it – two consecutive years of significant surpluses. This is due to constrained supply and strong demand growth in au tomotive and industrial applications, plus a significant reversal from negative to positive investment demand.

Edward Sterck: Director of Research at the World Platinum Investment Council.

T he surpluses of 2021 and 2022, at 1 147 koz and 804 koz respectively, belie the underlying market tightness, as evidenced by elevated lease rates, which prevailed throughout this time. The surplus of 2021 was largely attributable to a one-off supply boost stemming from a tempo rary bottleneck in production volumes resolving, plus investment outflows as investors rotated out of exchange traded funds (ETFs) into mining stocks to access high-yielding dividend income. The surplus in 2022 was due to further sizeable investment out flows, albeit driven by different dynamics. Weakened automotive production volumes, due to residual pan demic-related issues, also played a part, curtailing growth in automotive demand. It is apparent that, over this period, platinum imports into China exceeded identified demand by considerable amounts; according to Bloomberg data, almost 2.5 moz of platinum in excess of iden tified demand entered the country between the beginning of 2021 and the end of the third quarter of 2022, a figure that fully absorbs the surpluses of 2021 and 2022 combined, none of which was cap tured by published supply and demand data. In all probability, a significant proportion of the investment outflows from exchange stocks and ETFs flowed to China to meet this unrecorded demand – explaining market tightness, despite the hefty surpluses. These excess imports are now largely geographically

captive within China due to export controls, and therefore unavailable to meet 2023 metal shortfalls outside of China. Furthermore, they are only likely to become available domestically at significantly higher platinum prices than those seen in recent years. Platinum mining supply was beset by operational challenges in 2022, which are expected to remain a feature throughout 2023. In particular, power outage issues in South Africa could well impact refined metal output negatively for the foreseeable future. While output from Russia is currently forecast to remain flat year-on-year in 2023, Nornickel has cautioned of risks to future production levels as it struggles with the impact of sanctions on mining equipment, spares and consumables. Global mine supply in 2022 declined by 9 per cent compared to 2021, to 5 637 koz. South Africa represents the bulk of the drop and fell 14 per cent year-on-year to 4 012 koz, with reduced smelter availability adding to power outages. This year, total mining supply is forecast to rise 2 per cent only. Reduced availability of end-of-life vehicles, as auto makers are still unable to meet new vehicle demand, sees recycling supply remain below pre-Covid lev els in 2023. Overall supply is also forecast to rise by 2 per cent only. The 19 per cent growth in total platinum demand predicted for 2023 is heavily influenced by growth in the automotive and industrial sectors. At around

Platinum mining supply and demand schematic. Source: WPIC Platinum Quarterly Q3 2022, Metals Focus.

40 per cent of demand, the outlook for platinum automotive demand is key to the supply/demand funda mentals of platinum. The automotive sector itself has been hampered in its post-pandemic recovery due to supply chain issues – in particular, shortages of semi-conductor chips – meaning that fewer vehicles than expected had been produced before COVID-related disruptions and lockdowns impacted the industry. In 2023, car produc tion will once again fall short, by more than an estimated 15 million vehicles, when compared with 2023 automotive production forecasts released pre-pan demic at the end of 2019.

14  MODERN MINING  January 2023

Despite these challenges, platinum automotive demand has been remarkably resilient. In 2022, it grew by 12 per cent and the forecast is for 11 per cent growth in 2023, to reach 3 288 koz. Arguably, growth forecasts seem optimistic given economic predictions, but several factors support this trend. Firstly, vehicle production is still well below where it would normally be, even on an adjusted basis to allow for the recessionary economic outlook. Secondly, the market share of hybrid vehicles, which contain higher platinum group metal (PGM) loadings per vehicle than diesel or gasoline vehicles, is grow ing. Thirdly, platinum substitution for palladium will continue apace, surpassing 500 koz in 2023, up from 340 koz in 2022. Further, full implementation of China 6 and China VI emissions legislation by July 2023 will see platinum automotive demand in China alone reach almost 700 koz, some 2.7 times higher than pre-pandemic levels. Changes in global vehicle production have a greater impact on the palladium market where more than 80 per cent of use is in automotive applica tions, primarily in gasoline engine vehicles. Vehicle production rising in 2023, albeit to levels still below recessionary demand, will also drive palladium auto motive demand growth, although at a slower rate as platinum substitution escalates. Similar to automotive platinum demand, the robustness of the expected growth in industrial demand for platinum is rooted in strong foundations which leave it well-insulated from the recession ary outlook. To put 2022 and the outlook for 2023 in context, 2021 was a record year for industrial platinum demand, reaching 2 450 koz. This was largely due to glass manufacturing capacity expan sions which were not repeated in 2022, resulting in 2 110 koz of demand, a reduction on the prior year. In 2023 industrial demand is due to be the second highest year on record, with a forecast of 2 316 koz. Again, much of this growth is due to capacity expan sions in the glass industry, which have already been committed, meaning they will go ahead irrespective of economic conditions, so providing a high degree of predictability. Conversely, jewellery demand is struggling to reach pre-pandemic levels of demand, with the key China market remaining weak. Growth in other regions, especially the US, Japan and India, has, how ever, partially offset the decline in China. Demand in 2022 reached 1 953 koz, flat on the previous year and some 7 per cent below 2019. The outlook here is more uncertain as this segment of platinum demand could be more susceptible to recessionary pres sures. The uncertainty as China moves away from its zero-COVID strategy adds further risk to the 2023 forecast, which is again flat at 1 954 koz. In 2023, investment demand is expected to shift dramatically from negative investment demand of 525 koz in 2022 to positive investment demand of

212 koz. Bar and coin demand is fore cast to grow by 49 per cent to 507 koz, primarily due to a reversal of disinvestment in Japan, but also improved product availability

in North America and Europe. Exchange stock and ETF out flows will abate. Platinum is benefiting from

the emergence of hydrogen related applications as a new end-use demand segment. With the focus shifting to COP 28 later this year, the need to decarbonise the world is more acute than ever and hydrogen produced in platinum-containing electrolysers and used to displace natural gas, or as an energy source in fuel cell electric vehicles, will have a significant role to play in the energy transi tion. Hydrogen-related demand for platinum is expected to grow substantially through the 2020s and beyond, reaching as much as 35 per cent of

Bar and coin demand is forecast to jump 49 per cent in 2023, driving overall investment demand positive. Picture credit: ABC Bullion.

total platinum demand by 2040. Although this demand is a relatively small compo nent in 2023, small changes in demand can have an outsized impact on price setting in a market in deficit. Demand growth for i r idium and ruthenium, used alongside platinum in electrolysers and fuel cells respectively, is also likely as green hydrogen supports decarbonisation. Concerns that availabil ity of these metals, that are among the

Picture credit: Fuel cell stack, Bosch. Picture credit: Johnson Matthey.

rarest of the PGMs, could constrain platinum-related green hydrogen applications have been significantly allayed following technical developments that have improved metal efficiencies and recycling. For exam ple, a breakthrough in 2020 provided a platinum and iridium-based hydrogen electrolyser catalyst using up to 90 per cent less iridium, while improving per formance threefold. In addition, as platinum supply grows to meet the demand for hydrogen applica tions, more of these minor PGMs will be produced from the polymetallic orebodies. 

Platinum is benefiting from the emergence of hydrogen related applications, including electrolysers to produce green hydrogen and fuel cells, a new end-use demand segment.

Manufacture of emissions control catalysts.

January 2023  MODERN MINING  15

ZINC OUTLOOK

Zinc Ore outlook: Price performance review By Alana van Wouw, market analyst at Crane Ridge

Z inc futures are edging to around $2930 a tonne, which is in line with other metals. So, what is driving the zinc price now? Two key activities are the stronger dollar and the spike in Covid 19 cases in China. In October, China imported 1,007 Mt of refined zinc, down 77.55% on the month and 97.54% on the year. Europe could also influence the zinc price owing to the possibility of further sup ply disruptions and uncertainty around shortages of energy. In 2022, numerous European zinc producers either had to shut down their smelters entirely or cut production due to high energy costs and low inventories. The future of zinc is looking promising with opportuni t ies in the construct ion and infra structure, transportation, consumer goods, and industrial machinery sectors. The global zinc market is expected to reach $74.4 billion in 2027 and is fore cast to grow at a CAGR of 4.4% from 2021 to 2027. Zinc ore outlook: Demand and supply dynamics The zinc market has been driven by the increas ing demand for galvanized steel and infrastructure

Value

Rank

Countries Generating Greatest Surpluses from Global Zinc Trade

1

Peru

$1.63 billion $1.57 billion $1.5 billion $1.4 billion

2 3 4 5 6

Australia

Year over year, the value of globally exported zinc accelerated by an average 44.6% compared to $8.7 billion for 2020.

United States

Bolivia

Sweden

$493.9 million $465.8 million $462.3 million $427.0 million $341.9 million $279.9 million

Turkey

7

South Africa

8 9

Chile

Portugal

10

Eritrea

development in emerging markets such as India, Brazil, and Indonesia. Furthermore, growing demand from niche applications like smartphones, electric vehicles, mild hybrid engines, and power grid stor age will drive the global zinc market.

Zinc exports from all countries totalled $12.6 billion in 2021. That dollar amount results from an average 11.2% increase for all shippers of zinc over the 5-year period starting in 2017. Back then, exported zinc ores and concentrates were worth a total $11.3 billion. Year over year, the value of globally exported zinc accelerated by an average 44.6% compared to $8.7 billion for 2020. The following countries posted the highest positive net exports for zinc during 2021. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports. The below graph presents the sur plus between the value of each country’s exported zinc and its import purchases for that same commodity. Zinc Ore ESG outlook: One of the most significant transitions for the zinc market is the green energy sec tor via rechargeable zinc-based batteries. Currently there are six different types of zinc-based battery chemistries with different characteristics and resulting

16  MODERN MINING  January 2023